Discuss the components of GDP using the expenditure approach.
What will be an ideal response?
GDP equals consumption spending plus investment spending plus government spending plus net exports; GDP = C + I + G + (X ? M).
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A key issue in the presidential election of 2012 between President Obama and Mr. Romney concerned tax rates. President Obama favored increasing taxes, especially on the rich. As a result of a tax increase
A) the aggregate demand curve shifts leftward. B) the aggregate demand curve shifts rightward. C) the aggregate supply curve shifts leftward. D) the aggregate supply curve shifts rightward.
A monopolist always selects a price on the elastic portion of its demand curve
a. True b. False Indicate whether the statement is true or false
In 2006, before the Great Recession, the economy was booming and consumer demand was high, making the:
A. demand for loanable funds increase and shift to the right. B. demand for loanable funds decrease and shift to the left. C. supply of loanable funds increase and shift to the right. D. supply of loanable funds decrease and shift to the left.
When consumers and firms are driven by rational self-interest and they seek to maximize utility and profit respectively, then a parallel assumption would be that elected officials attempt to:
a. best serve the public interest. b. maximize hours worked. c. maximize their political support. d. fight for the oppressed and the disenfranchised, regardless of the political consequences.